SCHOOL FINANCIAL SERVICES TEAM – DEPARTMENT OF PUBLIC INSTRUCTION – SCHOOL FINANCE BULLETIN #595, May 1, 2015
PRELIMINARY INDIRECT COST CALCULATIONS FOR 2015-16 DUE MAY 31st:
Important Change Effective for Fiscal years beginning July 1, 2015
With the passage of the new OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Omni-Circular), there are 15 data elements which are required to be provided in all Federal Awards. One of those elements is the approved indirect cost rate applicable to the Federal Award. This new requirement necessitates the calculation and approval of all Indirect Cost Rates for all Wisconsin LEAs by July 1. Prior practice allowed the approval of final rates in December.
Due to this change we will require any adjustments required to be submitted to us by May 31 using Form PI-1161. This will provide the Department sufficient time to finalize rates by June 30.
Preliminary Indirect Cost Calculations for 2015-16
Preliminary Indirect Cost calculations have been posted at http://sfs.dpi.wi.gov/sfs_indirect. Please note that the indirect cost rates shown on the indirect cost rate computation are preliminary only. The preliminary rates may be adjusted by filing Form PI-1161 which is available on our website at: http://sfs.dpi.wi.gov/sfs_indirect. Under the department’s policy on indirect cost, each LEA has the option to choose either indirect cost reimbursement or direct cost reimbursement on federally assisted grant programs. Form PI-1161 has an optional indirect cost adjustment section to adjust certain 2013-2014 costs, if appropriate. It also has a required ‘certification by agency official” section to establish indirect cost rates. If there are no adjustments that need to be made to the preliminary rate calculation and you wish to have an official approval letter of your district’s final rates please sign and date Form PI-1161 and email a copy to our department by May 31, 2015 to .
Please contact Gene Fornecker at 608-267-7882 or with any questions.
PAYMENT OF 2014-15 YEAR END CLAIMS ** VERY IMPORTANT **: Each year in June the processing of claims is shut down for a couple of weeks in order for the State to perform year end wrap up and rollover into the new year. This June, the State of Wisconsin will also be going through a software conversion. The processing will cease earlier than in past years so please be aware of the following information when filing June claims for any federal or state program.
· The last date that DPI grant accountants will be allowed to process claims is June 10th. No claims may be processed in the current system after that date, and all payments will be processed in the new system starting in July.
· If processed by June 10th, you should receive payment by June 22nd.
· In order to guarantee receipt of payment by June 22nd, you must have your claim filed with DPI no later than June 1.
· Grant Accountants will continue to process claims up until June 10th, but cannot guarantee yours will be processed if received later than June 1.
· Processing of claims will begin again in July. A reminder that all final claims from fiscal year 2014-15 must be submitted by September 30, 2015.
· Please do not call requesting your claim be processed. All claims will be processed in the order they are received.
We apologize for any inconvenience this may cause and will do our best to make payments as timely as possible. If you have questions regarding this information please contact Alan Virnig at or 608-266-2428.
HIGH COST TRANSPORTATION AID – JUNE 15, 2015 PAYMENT: 2013 Wisconsin Act 20 (Section 121.59, Wisconsin Statutes) created a new categorical aid program that provides $5 million in additional funding to school districts in Wisconsin that have higher per pupil transportation costs when compared to the statewide average per pupil transportation cost. Each district with a per pupil transportation cost that exceeds one hundred and fifty percent (150%) of the statewide average per pupil transportation cost will receive a share of this categorical aid. 2014-15 aid is based on audited information from the previous fiscal year (2013-14).
The following spreadsheet includes school district data and final 2014-15 aid payments: http://sfs.dpi.wi.gov/sites/default/files/imce/sfs/xls/2015%20High%20Cost%20Transportation%20data%20Final%2005-01-2015.xlsx
Additional information can be accessed from the SFS Team home page at: http://sfs.dpi.wi.gov/. Select “Aid Information” from the gray scan bar on the left side of the page, then select “High Cost Transportation Aid Information”.
UPDATED HIGH COST SPECIAL EDUCATION AID INFORMATION NOW AVAILABLE: LEAs serving students with higher-cost, lower-incidence disabilities should review DPI’s updated information on the High Cost Special Education Aid program, available at http://sfs.dpi.wi.gov/highcost-sped. The program guidance document has been overhauled and expanded to provide more clarity, detail, and consistency on how the aid program works, which costs are eligible for reimbursement, and how it ties into IDEA Maintenance of Effort. There are a number of program changes from previous years, including:
· A definition for “actual, additional special education costs” eligible for High Cost Special Education Aid has been added.
· More cost categories are defined, such as construction or renovation, student-specific materials or supplies, and vehicle modification.
· Some contracted services eligible for Special Education and School-Age Parents Aid or IDEA funding are now also eligible for High Cost Special Education Aid.
· Tuition payments have been reorganized for greater consistency between private and public placements.
· Statutory provisions on which costs may or may not be claimed have been clarified.
Additionally, a worksheet is now available for LEA users to estimate High Cost Special Education Aid payments.
The updated program guidance will take effect with claims filed next year (2015-16) for this year’s (2014-15) students. Claims filed this year were evaluated under the old guidance and payments are nearly finalized. Watch for updates to the High Cost claim software and further technical assistance on the program. In the meantime, please contact Daniel Bush at or 608-267-9212 with questions.
COMMUNITY PROGRAMS AND SERVICES (FUND 80) 2014-15 AUDIT PROGRAM: To help your school district prepare for the 2014-2015 Fund 80 audit, please review the"Community Service Audit Program"Updated April 24, 2015.” This notice can be found on the Community Service Fund Information http://sfs.dpi.wi.gov/sfs_comm_serv website.
The audit program can also be accessed as follows:
Step 1. From School Financial Services http://sfs.dpi.wi.gov select “Audit/Auditor Info” in the left-hand column and that will take you to the Financial and Membership Audit Requirements website http://sfs.dpi.wi.gov/sfs_audit_1.
Step 2. Select the link to “Audit Manual Index” website http://sfs.dpi.wi.gov/sfs_aud_list
Step 3. Scroll down the page to “Chapter 3 Single Audit Requirements” and select the link to the “Department of Public Instruction Audit Programs” website http://sfs.dpi.wi.gov/sfs_fin_audit
Step 4. Scroll down the page to “Other Audit Programs” and select the link to the “Community Service Audit Program Updated 4/24/2015”
UPCOMING EVENTS:
UPCOMING WASBO [wasbo.com] and WASDA [wasda.org] WORKSHOPS AND CONFERENCES:
[May 6 - WASDA New Administrators Workshop V, Osthoff Resort, Elkhart Lake]
[May 12-15: WASBO Spring Conference, Madison Marriott West, Middleton]
SCHOOL FINANCE CONTACTS:
[Gene Fornecker, Auditor: 608-267-7882
[Brian Kahl, Auditor: 608-266-3862
[Derek Sliter, Auditor: 608-267-9218 ]
[Victoria Chung, Accountant: 608-267-9205
[Bruce Anderson, Consultant: 608-267-9707
[Carey Bradley, Consultant: 608-267-3752
[Dan Bush, Consultant: 608-267-9212
[Karen Kucharz Robbe, Consultant: 608-266-3464
[Debi Towns, Assistant Director: 608-267-9209
[Bob Soldner, Director: 608-266-6968
SUBSCRIBE/UNSUBSCRIBE TO THIS LISTSERV:
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PREVIOUS LISTSERV MESSAGE #594, April 21, 2015
NON-LEVY FUND 80 BALANCE TRANSFER: A one-time option to move non-levy fund balance dollars from Fund 80 to Fund 21 has been created, with prior DPI approval and passage of a Board of Education resolution. Many districts have Fund 80 balances with the intent to use these dollars in the future as allowed by prior law. State law was changed and school boards have limited options to address the use of accumulated Fund 80 balances.
School boards will have a one-time opportunity during 2014-2015 to move non-levy Fund 80 dollars to Fund 21 and in so, allow the district to honor the intent of this collection of non-levy revenue under existing state law and rule. The following process will be required:
1. District will provide the School Financial Services (SFS) Team with a written formal request. This request will include:
a. A cover letter that includes.
i. The dollar amount to be transferred and the non-levy source (e.g. fees, donations, etc.) of the balance.
ii. Description of how the Fund 80 balance came to be.
iii. A brief description of how these dollars will be used in the future based on current knowledge and district planning.
iv. The letter will explain how “rental fees” will be collected and recorded in the future to prevent a reoccurrence of significant non-levy fund balance.
1. WI Statute 120.13(17) allows a district to grant use of its facilities if such use does not interfere with school purposes or school-related activities and it involves a group that is not under the control of the school board. Facilities used for community service activities are typically owned by the district. Therefore, facility rental fees should be recorded in the general fund (Fund 10).
v. A statement that acknowledges the district will be responsible for any and all impacts on the Equalization Aid calculation this transaction creates now or in the future.
vi. The district understands that this is a one-time opportunity and all Board of Education transactions must be completed by July 31, 2015. The action will impact the 2014-2015 district financial statements.
2. A copy of the proposed formal resolution to be considered by the Board of Education. The resolution must clearly state the dollar amount to be transferred and the intended use of the non-levy balance. The SFS Team will review and approve the draft resolution to be presented to the Board of Education.
3. SFS Team will be allowed at least 10 working days to review the formal request starting on the day following receipt of the complete request.
a. The last date to provide a formal request will be Friday, July 17, 2015.
4. With the formal, documented approval of SFS, the Board of Education will then act on the formal resolution that has been pre-approved by the SFS Team.
5. This entire process (Board approval and transfer of funds) must be completed on or before Friday, July 31, 2015.
Send formal requests to Bruce W. Anderson at and please copy . Please attach as PDF or Word documents your cover letter with justification and the draft School Board resolution. If you have questions, please contact Bruce W. Anderson at (608) 267-9707 or .
SUMMER SCHOOL INFORMATION: The updated 2015 Summer School Guidelines can be viewed directly at http://sfs.dpi.wi.gov/sites/default/files/imce/sfs/doc/Summer%20School%20Letter%20FEB%202015.docx. The updated 2015 transportation and fees letter is accessible at http://sfs.dpi.wi.gov/sites/default/files/imce/sfs/doc/Summer%20School%20Transportation%20Letter%20Revised%20April%2017%202015.docx. Additional information can be found under Summer School on the left-hand sidebar of the SFS website at http://www.dpi.wi.gov/sfs/index.html or directly at http://sfs.dpi.wi.gov/sfs_summ_sch. Starting in 2014, certain online courses no longer require resident students to be on-site if specific eligibility criteria are met.
Districts may only charge a minimal material fee if the district is claiming membership for state aid or revenue limit purposes for the course. If the district claims state aid under s. 121.14, Wis. Stats., there shall be no cost to the resident student beyond individual use supplies (towels, gym clothes, notebooks, pencils), textbooks, or similar items (workbooks). Items for which fees are charged must be legally permitted and actually purchased for summer school use.
Summer school fees cannot be used to subsidize other classes or students. For example, charging a single fee, such as $20, to all summer school students is not allowed unless it can be documented that each student received or consumed supplies at least equal to the fee. Most often fees will vary, and depend on what supplies and materials each class uses.
Questions should be directed to Carey Bradley or 608-267-3752.
2014-15 REQUIRED MEMBERSHIP AUDITS DUE MAY 1: The state superintendent is required annually to select at least 25 percent of school districts to submit membership audits (s. 115.28(18), Wis. Stats.) Notification of required membership audits was sent in February via e-mail to the district administrators of the selected districts and to district auditors via our auditor listserv. Subscribers to this listserv can view the e-mail notification content and a list of the districts with required membership audits by selecting the “Audit/Auditor Info” link on the left hand scan bar of the team’s home web page directly at http://sfs.dpi.wi.gov/sfs_m_audit. The membership audits are due May 1, 2015.
A listing of school districts with required membership reports can be accessed on the same site referenced above. Districts participating in the Integration Transfer Program (ITP) are required to have a separate audit of ITP Membership and should contract with their auditor for this. The ITP membership audit program is currently being updated and will be available soon. The ITP membership audits are due May 1, 2015.
QUALIFIED ZONE ACADEMY BOND (QZAB) ALLOCATION: The U.S. Treasury has provided the State of Wisconsin with $5,963,000 of QZAB issuance authority for the 2014 calendar year. School districts may issue zero or low interest bonds to rehabilitate school facilities and obtain equipment through the federal Qualified Zone Academy Bond (QZAB) program for those school buildings with at least 35% of the student population eligible for free and reduced lunch. Applications are due May 15, 2015. Awards will be announced on or before June 12th.
For additional information on QZAB refer to http://sfs.dpi.wi.gov/sfs_recovery. For questions please contact Brian Kahl, Auditor, by e-mail at or (608) 266-3862.